In April, China’s coal imports jumped by 43% compared to March, owing to panic purchasing in response to supply shortages caused by Russia’s invasion of Ukraine.
Last month, China imported 23.55 million tonnes of coal, according to figures released by the General Administration of Customs on Monday. In March 2021, 16.42 million tonnes were produced, compared to 21.73 million tonnes in April 2021.
China imported 75.41 million tonnes of coal from January to April, down 16 percent from the same time a year ago. Benchmark Early in March, Newcastle thermal coal hit a new high of $440 per tonne, fueled by worries of a supply shortage as Western countries promised to put sanctions on Russia’s banking system and energy supplies following its invasion of Ukraine. Moscow refers to its intervention in Ukraine as a “special operation.” Chinese traders avoided pricey seaborne cargos in favor of domestic sources as global coal prices remained high and the Chinese central government instructed miners to enhance domestic supply and control local pricing.
Imports of the polluting fossil fuel might be harmed as a result of widespread industrial plant shutdowns across China caused by COVID-19 breakouts.
According to statistics provided by Wind, the coal stockpile at key power plants along China’s coast was above 30 million tonnes in late April, up from an average of around 25 million tonnes from 2016 to 2021.
China’s finance ministry has reduced import duties on all types of coal to zero from May 1, 2022, to March 31, 2023, in an effort to assure energy security in the face of rising world prices, but merchants are skeptical that this would result in increased imports.